Signature Care Holdings has submitted a planning proposal to rezone the 12 hectares that once housed Charles Sturt University's south campus in Turvey Park into residential land.

The redesignation would allow the company to finally kickstart its ambitions to turn the southern half of the lot into a residential subdivision containing up to 90 homes.

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Croft Developments project planning manager Clinton Witnish, who has helped design the project, said building homes on the "underutilised" lot would have multiple benefits for Wagga.

"We've been pushing this rezoning for years and trying to get it approved because there's a housing shortage," he said.

"It's an exciting thing for the local area to have newly-available land that is right in the centre of town so to speak."

The subdivision would be centred around at least four new streets emanating from a roundabout and also includes plans for a small public park.

Mr Witnish said the residential lots planned for the area would be about 700 square metres each.

"There's a variety of sizes but they're quite generous sized lots," he said.

The project manager believes the area would be the perfect place for young families to build or purchase homes due to the proximity of Saint Mary Mackillop College and Henschke Primary School.

Following development approvals, construction is expected to start towards the start of 2023 and take between six to 12 months to complete.

Wagga councillor Tim Koschel said he would wait until Monday's general meeting before making a decision but was "leaning towards" supporting the rezoning.

"Vacant land is hard to come by in Wagga and I think this is a sensible decision for us to be making," he said.

"Green space is really, really important but I think the location of this to services like the hospital, shops and schools makes it prime land for housing."

Fellow councillor Mick Henderson also voiced his support for the initiative, which he said would be a "great outcome" for the city.

"It's only 15 minutes from the centre of town, a lot of the infrastructure and utilities are already there and it will be able to cater to different styles of housing," he said.

"The land has been disused for years and this is a great opportunity to capitalise on the land and secure future housing for Wagga.

The subdivision would be just south of the 144 bed aged care home which is currently being constructed on the lot by Signature Care Holdings.

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